ECA REGIONS / PACIFIC

ECA has a recent focus on providing advice on energy issues in the Pacific. Our team includes staff originating from or currently based in Australia and New Zealand with many years of experience dealing with the unique challenges faced by island nations in the Pacific. Recent work includes projects in Australia, Papua New Guinea and Fiji.

RECENT PROJECTS INCLUDE >

RECENT PROJECTS INCLUDE >

ECA acted as expert witnessed in an arbitration case regarding the taxation of natural gas. The team’s role was to price intermediary gas competitively at various points between the offshore extraction point and onshore connection point and critique an existing netback valuation. The resulting intermediary competitive gas valuations were used to estimate tax liabilities of a major gas producer over the period 1990-2002.

On behalf of IFC, ECA prepared a step-by-step guide to investing in renewable electricity in the Pacific, focusing on Fiji, PNG, Solomon Islands, and Vanuatu. The guide included the current state of renewables, the potential for investment, regulatory barriers, and the specific steps for private sector investment.

Fiji passed a new Electricity Act, which directs the corporatisation of the electricity utility and the adoption of a more rigorous and transparent method of setting electricity tariffs. Through Asian Development Bank funding, ECA undertook a cost of service study that formed a key input to future tariff determinations. The study helped stakeholders understand the future costs of Energy Fiji Ltd (EFL) providing electricity on each of Fiji’s main islands, the costs of providing generation/transmission/distribution services, and the costs of serving different customer groups.

The project involved reviewing the long term electricity demand and price scenarios constructed by the client for their long term view of the Australian power market and planning for new investment. ECA reviewed the power market scenario model and also the investment evaluation model, as well as making detailed analyses and comments on the scenario outputs.

The Government of Fiji has asked ECA to undertake a review of the national energy policy and to recommend possible legislative changes to facilitate the future of the energy sector. This will entail improving reliability and access to energy supplies, to strengthen the regulatory framework in the energy sector and mainstreaming energy across sectors to develop a new energy policy framework.

ECA reviewed third party access models internationally, drafted a third party access code (based on the recommended model), developed accompanying pricing models, drafted a grid code and provided capacity building and training.

Energy Fiji Limited and European Investment Bank (EIB) sought assistance to prepare a plan for the development of the transmission network on Viti Levu, Fiji’s main island. ECA filled the roles of transmission planner and economic/financial expert, whom prepared a least cost development plan and then helped prepare tender documents for the identified priority projects.

We reviewed third party access models internationally, drafted a third party access code (based on the recommended model), developed accompanying pricing models, drafted a grid code and provided capacity building and training.

Jemena Gas Networks had to prepare its five-yearly price submission to the Australian Energy Regulator. ECA provided assistance with this, in particular in reviewing Jemena’s suite of regulatory models.